With Regard to Reporting Contingent Liabilities on a Balance Sheet,financial

question 27

Multiple Choice

With regard to reporting contingent liabilities on a balance sheet,financial statements prepared under International Financial Reporting Standards (IFRS) will:

• A)Have fewer contingent liabilities accrued than under U.S.GAAP because the IFRS guideline for "probable" is a higher percentage than the U.S.GAAP guideline for "probable".
• B)Have more contingent liabilities accrued than under U.S.GAAP because the IFRS guideline for "probable" is a lower percentage than the U.S.GAAP guideline for "probable".
• C)Have more contingent liabilities accrued than under U.S.GAAP because IFRS requires all lawsuits,environmental problems,and product warranties that are reasonably estimable to be accrued while U.S.GAAP requires accrual only if losses are reasonably possible of being incurred.
• D)Have fewer contingent liabilities accrued than under U.S.GAAP because IFRS requires a more subjective evaluation of the probability of occurrence than does U.S.GAAP.

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Definitions:

Computer Training

The education and skill development process for learning how to use computers effectively, including software applications, programming, and system management.

Menopause

The time in a woman's life, typically between the ages of 45 and 55, when her menstrual cycles cease, marking the end of reproductive capability.

Psychological Distress

A state of emotional suffering characterized by symptoms of anxiety and depression, often as a reaction to stress.

Middle-aged

Refers to the period of life roughly between the ages of 45 and 65, often considered a time of transition with specific developmental tasks and challenges.